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2024-009 Fleet Purchase Under Delegation of Authority Date: February 23, 2024 Report No. 2024-009 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Fleet Purchase Under Delegation of Authority EXECUTIVE SUMMARY: In February 2024, the City utilized delegation authority approved by Ordinance 22-1269 to purchase a total of two chassis for the Fire and Electric Department. These chassis replacements were funded in the FY 22-23 Budget, and Fleet Services had been unable to locate replacements through existing contracts due to market conditions. Fleet Services identified an opportunity to purchase the two chassis at Ron Carter Chrysler Dodge Jeep Ram in Alvin, Texas, and was able to act quickly, since the replacements aligned with the delegation authority requirements. BACKGROUND: In late 2019, the City began experiencing challenges in securing materials and supplies due to supply chain issues. Conditions worsened and began to affect several operational areas including Fleet Services. Vehicle lead times grew close to a year under the organization's normal acquisition process. At times,vehicles and equipment become available through other avenues such as dealer inventory, lease-to-own opportunities, and unclaimed allocations from non-contract Original Equipment Manufacturer(OEM). Staff requested a Delegation of Authority for Fleet Services allowing the City to move quickly when opportunities present to procure vehicles or equipment outside the organization's normal acquisition process. On June 28, 2022, City Council approved Ordinance 22-1269 providing for the delegation under the following conditions: 1) City Manager, or their designee, will be allowed to sign contracts or other required documentation with OEM suppliers to purchase a vehicle for a city utility or public safety department (which cost that has been approved through the budget process) through the following means: a) Fleet Services will review any available procured contracts (i.e., City of Denton contracts, cooperative contracts,and other City contracts with piggyback options). Fleet Services will use such a contract if available. Once a contract is located, the City Manager, or their designee, will be able to execute the appropriate documentation to purchase under the contract. b) In the event there is not a procured contract that can be used for the purchase,and the purchase is required to protect the health and safety of City of Denton residents,Fleet Services will work with the relevant utility or public safety department to prepare a declaration of emergency that will detail why the purchase had to go outside of the normal process and how health and safety are at issue to be reviewed and approved by Purchasing and Legal. Date: February 23, 2024 Report No. 2024-009 c) In the event there is not a procured contract that can be used for the purchase,and the purchase is required to protect the health and safety of City of Denton residents,Fleet Services will work with the relevant utility or public safety department to prepare a declaration of emergency that will detail why the purchase had to go outside of the normal process and how health and safety are at issue to be reviewed and approved by Purchasing and Legal. d) Fleet Services will provide a report to City Council in the Friday Report, or other appropriate method, regarding any vehicles purchased with this authority, the cost, any markup, or discounts received, and a running total of each department's vehicle budget as the funds are used. 2) This delegation of authority is time limited to the earlier of three years or when market conditions return to normal. DISCUSSION: Chapter 791 of the Texas Government Code authorizes respective participating governments to enter into agreements for the purchase of goods and services. The Agreement allows both entities to utilize contracts for goods and services competitively solicited by the other party to the contract. The solicitation process followed by both entities meets all statutory procurement requirements per Local Government Code 271.102. EXHIBITS Exhibit 1 Sales Quote Exhibit 2 Sales Quote STAFF CONTACT: Dustin Rolfe Fleet Superintendent Dustin.Rolfe@cityofdenton.com (940) 349-8438 Ron Carter Chrysler Dodge Jeep Ram 3005 FM 528 RD Priced Order Confirmation(POC) ALVIN,TX 775118837 Date Printed: 2024-01-24 10:02 AM VIN: 3C7WRNCLOPG625929 Quantity: 01 Estimated Ship Date: 2023-06-01 2:00 AM VON: 58726029 Status: KZ-Released by plant and invoiced Date Ordered: 2023-04-07 12:09 PM Ordered By: S54149D Sold to: Ship to: Ron Carter Chrysler Dodge Jeep Ram(27212) Ron Carter Chrysler Dodge Jeep Ram(27212) 3005 FM 528 RD 3005 FM 528 RD ALVIN,TX 775118837 ALVIN,TX 775118837 Vehicle: 2023 5500 REG CAB CHASSIS 4X4(192.5 in WB-CA of 108 in)(DPOL65) Sales Code Description MSRP(USD) Model: DPOL65 5500 REG CAB CHASSIS 4X4(192.5 in WB-CA of 108 in) 56,415 Package: 2YA Customer Preferred Package 2YA 0 MMZ Black Wheel Flares LCH Rear Dome Lamp M17 Black Exterior Badging-Trucks CLP Door Sill Scuff Pads MM5 Grille-Surround Matte Black LBA Map/Courtesy Lamp LME Halogen Quad Headlamps JKH Glove Box CEU Key Fob-Black ETN 6.7L 16 Cummins Turbo Diesel Engine 9,195 DF2 6-Spd Auto Aisin AS69RC HD Trans 1,000 Paint/Seat/Trim: PR4 Flame Red Clear Coat 0 APA Monotone Paint 0 *TX HD Vinyl 40/20/40 Split Bench Seat 0 -X8 Black/Diesel Gray 0 Note:This is not an invoice.The prices and equipment shown on this priced order confirmation are tentative and subject to change or correction without prior notice.No claims against the content listed or prices quoted will be accepted.Refer to the vehicle invoice for final vehicle content and pricing.Orders are accepted only when the vehicle is shipped by the factory. Page 1 of 3 Options: CBE 40/20/40 Split Bench Seat 0 MRT Chrome Tubular Side Steps 595 AIDE Cold Weather Group 175 NHK Engine Block Heater XD6 Mopar Winter Front Grille Cover JPE Power 2-Way Driver Lumbar Adjust 95 WP2 19.5x6.0 Aluminum Whls(Set of 6) 1,995 WMJ Center Hub JKV 115V Auxiliary Power Outlet 195 XHR 400W Inverter AH2 Ambulance Prep Group 935 HBC Rear A/C Heater Prep Group XF6 Voltage Monitoring Auto Idle Up Sys A61 Tradesman Level 1 Equipment Group 1,780 CTY Upgraded Door Trim Panel CUN Overhead Console GT2 Mirror Pwr Heat Fold Telescope Black GXM Remote Keyless Entry JPH Speed Sensitive Power Locks JPY Pwr Windows Front 1-Touch Down LE4 Black Exterior Mirrors LEB Ext. Mirrors w/Supplemental Signals LEC Exterior Mirrors Courtesy Lamps LF2 Power Adjust Mirrors LF3 Manual Telescoping Mirrors LFD Manual Folding Exterior Mirrors LFX Convex Aux Mirrors Power-Adjustable LNY Mirror Running Lights NHJ Exterior Mirrors w/Heating Element LBT Overhead Cupholder Lamp YEP Manuf Statement of Origin 0 LNJ Front Fog Lamps 195 AMP Chrome Appearance Group 1,425 MAF Grille-Matte Black Mesh w/Chrome MCT Bright Front Bumper MFP Chrome Headlamp Bezels MNQ Grille-Surround Chrome WMJ Center Hub GFD Rear Sliding Window 295 NAS 50 State Emissions 0 XEF Transfer Case Skid Plate Shield 145 XAA ParkSense Rear Park Assist System 295 4NU Fuel Fill/Battery Charge 0 YGL 6 Additional Gallons of Diesel Fuel 0 51\16 Easy Order 0 4EA Sold Vehicle 0 Non Equipment: 573 0 Destination Fees: 1,995 Total Price: 76,7_3.0.. Order Type: Retail PSP Month/Week: Scheduling Priority: 1-Sold Order Build Priority: 01 Note:This is not an invoice.The prices and equipment shown on this priced order confirmation are tentative and subject to change or correction without prior notice.No claims against the content listed or prices quoted will be accepted.Refer to the vehicle invoice for final vehicle content and pricing.Orders are accepted only when the vehicle is shipped by the factory. Page 2 of 3 Salesperson: Customer Name: JACK BURGESS Customer Address: 527 WOOSTER RD LOUDONVILLE OH 44842 USA Instructions: Note:This is not an invoice.The prices and equipment shown on this priced order confirmation are tentative and subject to change or correction without prior notice.No claims against the content listed or prices quoted will be accepted.Refer to the vehicle invoice for final vehicle content and pricing.Orders are accepted only when the vehicle is shipped by the factory. Page 3 of 3 Ron Carter Chrysler Dodge Jeep Ram 3005 FM 528 RD Priced Order Confirmation(POC) ALVIN,TX 775118837 Date Printed: 2024-01-24 10:37 AM VIN: 3C7WRMFL9RG129875 Quantity: 01 Estimated Ship Date: 2023-08-17 1:59 AM VON: 59353529 Status: KZ-Released by plant and invoiced Date Ordered: 2023-06-19 7:34 PM Ordered By: S54149D Sold to: Ship to: Ron Carter Chrysler Dodge Jeep Ram(27212) Ron Carter Chrysler Dodge Jeep Ram(27212) 3005 FM 528 RD 3005 FM 528 RD ALVIN,TX 775118837 ALVIN,TX 775118837 Vehicle: 2024 5500 CREW CAB CHASSIS 4X2(197.4 in WB-CA of 84 in)(DP5L94) Sales Code Description MSRP(USD) Model: DP51_94 5500 CREW CAB CHASSIS 4X2(197.4 in WB-CA of 84 in) 56,930 Package: 2YA Customer Preferred Package 2YA 0 MMZ Black Wheel Flares LCH Rear Dome Lamp M17 Black Exterior Badging-Trucks CUN Overhead Console MM5 Grille-Surround Matte Black CLP Door Sill Scuff Pads LBA Map/Courtesy Lamp LME Halogen Quad Headlamps JKH Glove Box LBT Overhead Cupholder Lamp ETN 6.7L 16 Cummins Turbo Diesel Engine 9,295 DF2 6-Spd Auto Aisin AS69RC HD Trans 1,000 Paint/Seat/Trim: PW7 Bright White Clear Coat 0 APA Monotone Paint 0 `V9 Cloth 40/20/40 Bench Seat 295 -X9 Black 0 Note:This is not an invoice.The prices and equipment shown on this priced order confirmation are tentative and subject to change or correction without prior notice.No claims against the content listed or prices quoted will be accepted.Refer to the vehicle invoice for final vehicle content and pricing.Orders are accepted only when the vehicle is shipped by the factory. Page 1 of 3 Options: XAC ParkView Rear Back-up Camera 495 MRT Chrome Tubular Side Steps 595 UBD Uconnect 5 W 8.4"Display(USA) 1,215 JFJ Temperature&Compass Gauge JLP GPS Antenna Input R05 All R1 Low Radios RAA All Radio Equipped Vehicles RDG Global Telematics Box Module(TBM) RF5 Google Android Auto RFL 8.4"Touchscreen Display RFP Apple CarPlay RSD SiriusXM Satellite Radio RTE Bluetooth Handsfree Phone and Audio RTF Integrated Center Stack Radio RTM Ram Connect(Connected Services) RTQ 4G LTE Wi-Fi Hot Spot X913 SiriusXM Radio Service X9E For Details Visit DriveUconnect.com X9H For More Info Call 800-643-2112 XRB Integrated Voice Command GXM Remote Keyless Entry 495 YEP Manuf Statement of Origin 0 TBB Full Size Spare Tire 395 WKG 19.5 Steel Spare Wheel JJ9 77 MPH Maximum Speed 95 TAJ 225/70R19.5G FT All Pos RR Traction 250 AMP Chrome Appearance Group 1,525 MAF Grille-Matte Black Mesh w/Chrome MCT Bright Front Bumper MFP Chrome Headlamp Bezels MNQ Grille-Surround Chrome WMJ Center Hub JPE Power 2-Way Driver Lumbar Adjust 95 AAU Safety Group 2,245 JHC Rain Sensitive Windshield Wipers JJ1 Trailer Light Check LAS Lane Keep Assist LSU Full Speed Fwd Collision Warn Plus NH3 Adaptive Cruise Control w/Stop RDZ Steering Wheel Mounted Audio Ctrls SJE Adaptive Steering System XHC Trailer Brake Control SCV Leather Wrapped Steering Wheel GNK Rear View Auto Dim Mirror JAL Cluster 7.0"TFT Color Display JKV 115V Auxiliary Power Outlet 195 XHR 40OW Inverter XAW Rear Backup Alarm 145 LAY LED Tail Lamps 95 NAS 50 State Emissions 0 4NU Fuel Fill/Battery Charge 0 YGL 6 Additional Gallons of Diesel Fuel 0 51\16 Easy Order 0 4EA Sold Vehicle 0 Non Equipment: 573 0 Note:This is not an invoice.The prices and equipment shown on this priced order confirmation are tentative and subject to change or correction without prior notice.No claims against the content listed or prices quoted will be accepted.Refer to the vehicle invoice for final vehicle content and pricing.Orders are accepted only when the vehicle is shipped by the factory. Page 2 of 3 Destination Fees: 1,995 Total Price: 77 355 . Order Type: Retail PSP Month/Week: Scheduling Priority: 1-Sold Order Build Priority: 01 Salesperson: Customer Name: THORS HAMMER TRUCKING Customer Address: 14723 DOGWOOD TREE ST HOUSTON TX 77060 USA Instructions: Note:This is not an invoice.The prices and equipment shown on this priced order confirmation are tentative and subject to change or correction without prior notice.No claims against the content listed or prices quoted will be accepted.Refer to the vehicle invoice for final vehicle content and pricing.Orders are accepted only when the vehicle is shipped by the factory. Page 3 of 3